Enhancing supply chain resilience facing partial and complete disruptions: The application in the cooking oil industry

Abstract

Nowadays, food supply chains are more vulnerable to disruptions due to competition, uncertain environments, and global catastrophes such as the recent pandemic. Due to the importance of addressing disruption risks, this study develops a hybrid mechanism to enhance resilience in a multi-product supply chain. The proposed mechanism improves supplier resilience in a Cooking Oil Supply Chain (COSC) network design. First, we identify elements that affect supplier resilience and present a mechanism based on the Analytical Network Process (ANP) to evaluate resilience. In addition, several strategies are determined to enhance network resilience. Moreover, a stochastic mathematical formulation is proposed to utilize suppliers’ scores and a combination of identified strategies to strengthen supply chain resilience. The developed stochastic model encompasses three objectives and considers possible partial and complete disruptions of the supply chain network. Furthermore, we develop a robust counterpart formulation to handle the disruption uncertainty of the COSC and utilize the Normalized Normal Constraint (NNC) method to generate Pareto optimal solutions. Lastly, we put the implemented mechanism into practice in a real-world case to demonstrate its effectiveness in enhancing supply chain resilience. Likewise, we unveil that the implementation of suitable resilience strategies within the supply chain can lead to substantial improvements in performance metrics. For example, the results obtained illustrate that by embracing resilience strategies, the proposed mechanism has the potential to reduce the overall cost of the supply chain by as much as 56%.